ValueClick in Westlake Village, one of the world’s largest digital marketing companies, reported a 27 percent jump in revenues for the third quarter and a 5 percent increase in profitability.
Revenues increased to $136 million, up from $107 million for the year-ago quarter. Net income was $38 million, or 47 cents per diluted share, up from $36 million or 44 cents a share a year ago.
The company reported high single-digit increases in its affiliate marketing segment; a 100 percent increase in its media division, though most of that increase was due to acquisitions; double-digit growth in its Owned and Operated unit and an increase in the mid-teens for its technology division.
“Given the tremendous growth opportunities and higher margin profiles of our other three segments, we believe the time is right to proactively scale down some of the lower-margin businesses within the Owned & Operated segment that rely on paid traffic and search monetization, and this is reflected in our fourth quarter expectations,” John Pitstick, chief financial officer of ValueClick said in a statement. “We will continue to focus on our higher-margin, organic traffic-based owned and operated properties, which complement our core marketing services offerings.”
In its guidance for the fourth quarter, the company said earnings should be 39 to 41 cents a share on revenues of $173 million to $179 million.